Judge: Armen Tamzarian, Case: 23STCV00632, Date: 2023-07-21 Tentative Ruling

Case Number: 23STCV00632    Hearing Date: September 1, 2023    Dept: 52

Defendants S.R.R. Group Inc. dba Arco AM/PM Market and Lakewood Norwalk Station Corporation’s Motion for an Order to Set Aside Default Judgment

Defendants S.R.R. Group Inc. dba Arco AM/PM Market and Lakewood Norwalk Station Corporation move to set aside their defaults and the default judgment against them.  “The court may, upon any terms as may be just, relieve a party or his or her legal representative from a judgment, dismissal, order, or other proceeding taken against him or her through his or her mistake, inadvertence, surprise, or excusable neglect.”  (CCP § 473(b).)  “Because the law favors disposing of cases on their merits, ‘any doubts in applying section 473 must be resolved in favor of the party seeking relief from default.’ ”  (Rappleyea v. Campbell (1994) 8 Cal.4th 975, 980.)

Defendants present sufficient evidence that their defaults and the default judgment against them resulted from their excusable neglect.  Vamsi Kumar Kotla, an officer acting on defendants’ behalf, states, “Shortly after the Defendants learned of the lawsuit filed by the insurance company, the Defendants contacted their insurance company directly in an effort to resolve this matter without litigation.”  (Kotla Decl., ¶ 3.)  On “May 17, 2023, Defendants learned that a default judgment had been entered against them.  Defendants were surprised by the default judgment because they believed that because they were in settlement discussions with the insurance company that their time to answer the complaint would be extended until a reasonable time after the settlement discussions failed.”  (Id., ¶ 4.) 

Defendants made a simple and human mistake.  Their mistake was not so great as to be inexcusable.  Plaintiff Security National Insurance Company filed a notice that it does not oppose this motion.  Relief under Code of Civil Procedure section 473, subdivision (b) is appropriate. 

            Defendants S.R.R. Group Inc. dba Arco AM/PM Market and Lakewood Norwalk Station Corporation’s motion to set aside default judgment is granted. 

The court hereby vacates the defaults of defendants S.R.R. Group Inc. dba Arco AM/PM Market and Lakewood Norwalk Station Corporation.  The court hereby vacates the default judgment against defendants entered on May 3, 2023. 

Defendants are ordered to file their proposed answer (attached as Exhibit 1 to the Declaration of Dariush G. Adli) forthwith.